Entrepreneurship · Startups

What will net neutrality reversal mean for entrepreneurs?

Neha Jain I have done MTech and currently working in Pune

May 19th, 2017

This month, the Federal Communications Commission (FCC) in the U.S. will begin its attempt to dismantle President Obama’s net neutrality rules, which requires major ISPs to treat all traffic equally. I’m wondering what a reversal of this policy will mean for entrepreneurs.

Joanan Hernandez CEO & Founder at Mollejuo

May 22nd, 2017

To start, I agree with the net neutrality concept. And I think it's unfortunate that is being dismantle.

That said, initially it shouldn't affect, as the internet grew without IPSs applying such a toll. And if any company's traffic is small, ISPs won't care. The challenge begins when that company traffic increases to a point of showing on ISP radars. At that time, ISPs can demand a toll for you to be present there (which is unfair). Hopefully, at that time, this new flashy company should have enough income to negotiate a rate.

By the same token, ask yourself what would you do if you were in the shoes of ISP. You have a flat business, your only currency is the number of subscribers you have. I think many human beings under that situation will try to leverage other internet companies entering your network, this leverage being reflected as a toll to enter. I'm not saying is good thing, all I'm saying most people under that situation will probably default to the same behaviour.


Selvan Rajan

May 19th, 2017

If I pay a better price, your traffic will slow down. It almost like search engine ranking.

Ashish Bhatia CoFounder, UNC Kenan-Flagler Business School, Investment Banking Technologies

Last updated on May 21st, 2017

Net neutrality is/was the rule that all traffic on the Internet should be treated equally and thus internet traffic for no one business is favored over another.

If net neutrality rule is dismantled and a business can't cover the cost of joining the so-called “fast lane” or pass the cost to the customers, it would have to opt for slower speeds. This, in turn, has the potential to disrupt the eCommerce/mCommerce as we know it.

Buyers with short of attention span would not tolerate let's say product images or videos being downloaded slowly and might turn to retail giants with faster loading content. Such a move by consumers could push small businesses out of luck if they were trying to compete with some deep-pocketed established players.

However, the unintended consequence could also mean that more customers visit their local retail store to make a purchase rather than trying to buy products online.

This would be better for the local economy and businesses.